Page:United States Statutes at Large Volume 110 Part 1.djvu/204

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110 STAT. 180 PUBLIC LAW 104-105—FEB. 10, 1996 "(i) GENERAL RULE.—For purposes of this subsection, the determination of the costs of providing any assistance under any provision of this section with respect to any insured System bank shall be made as of the date on which the Corporation makes the determination to provide the assistance to the institution under this section. "(ii) RULE FOR LIQUIDATIONS.—For purposes of this subsection, the determination of the costs of liquidation of any insured System bank shall be made as of the earliest of— "(I) the date on which a conservator is appointed for the insured System bank; "(II) the date on which a receiver is appointed for the insured System bank; or "(III) the date on which the Corporation makes any determination to provide any assistance under this section with respect to the insured System bank. " (D) RULE FOR STAND-ALONE ASSISTANCE.—Before providing any assistance under paragraph (1), the Corporation shall evaluate the adequacy of managerial resources of the insured System bank. The continued service of any director or senior ranking officer who serves in a policy- making role for the assisted insured System bank, as determined by the Corporation, shall be subject to approval by the Corporation as a condition of assistance. "(E) DISCRETIONARY DETERMINATIONS.— Any determination that the Corporation makes under this paragraph shall be in the sole discretion of the Corporation.". (b) CONFORMING AMENDMENTS. —Section 5.61(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-10(a)) is amended— (1) in paragraph (1) by striking "IN GENERAL.— " and inserting "STAND-ALONE ASSISTANCE.—"; and (2) in paragraph (2)— (A) by striking "ENUMERATED POWERS. —" and inserting "F ACILITATION OF MERGERS OR CONSOLIDATION. — "; and (B) in subparagraph (A) by striking "FACILITATION OF MERGERS OR CONSOLIDATION.— " and inserting "IN GEN- ERAL.—". SEC. 218. OVERSIGHT AND REGULATORY ACTIONS BY THE FARM CREDIT SYSTEM INSURANCE CORPORATION. The Farm Credit Act of 1971 is amended by inserting after section 5.61 (12 U.S.C. 2279a-10) the following: 12 USC " SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION. "(a) DEFINITIONS. —In this section, the term 'institution' means— "(1) an insured System bank; and "(2) a production credit association or other association making loans under section 7.6 with a direct loan payable to the funding bank of the association that comprises 20 percent or more of the funding bank's total loan volume net of nonaccrual loans. " (b) CONSULTATION REGARDING PARTICIPATION OF UNDERCAPITALIZED BANKS IN ISSUANCE OF INSURED OBLIGATIONS.— The Farm Credit Administration shall consult with the Corporation